The Chinese interest rate cut which took place on early Friday morning helped to strengthen the Australian Dollar but the comments from ECB President Mario Draghi meant that the AUD strength against the Pound didn’t last too long.
Mario Draghi has opened the door to further intervention in monetary policy in an attempt to combat falling inflation and low growth in Europe. This led global investors to selling the Euro and ploughing money into the Pound which saw GBPAUD exchange rates hit above 1.80 again.
In what has been a rather turbulent 2 weeks for GBPAUD exchange rates I think we will see further gains for Sterling vs the Australian Dollar as we go into the early part of the week.
UK GDP is published in Wednesday and if the data is better than the 3% expected we could see further Sterling gains.
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